The Balance Sheet of Tech Track Reports Total Assets of $400,000

question 96

Multiple Choice

The balance sheet of Tech Track reports total assets of $400,000 and $500,000 at the beginning and end of the year, respectively. Sales revenues are $1.1 million ($0.8 million in the previous year) , net income is $40,000, and net cash flows from operating activities are $50,000. How does Tech Track's cash flow to sales ratio compare to the industry average of 5%?

• A) Better.
• B) Worse.
• C) Same as.
• D) Cannot be determined with the data provideD.

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Definitions:

Communist Countries

Nations where the government controls most forms of economic activity and property is commonly owned.

Scarce Resources

Scarce resources are resources that are limited in availability and cannot satisfy all the wants and needs of an economy or population.

Allocate

To distribute resources or duties for a specific purpose according to a plan.

Irrational Behavior

Irrational behavior describes actions or decisions that are not in line with logical or rational thinking, often defying expected outcomes based on standard economic theories.